Page 24 - Insurance Times February 2022

growth. A whole set of emerging trends will conquer for the companies will give out policies based on the personal
greater good. According to our analysis, we present to you preferences of the client. Driverless vehicles may cause
10 such trends: disruption leading to change in motor insurance business
1. Customer satisfaction will prove out to be the ultimate models.
goal of the insurance companies. The insurers must 9. The role of underwriters and actuaries will change with
realise that the paradigm shift towards technology driven respect to the digital data generated.
industry aims at providing satisfaction to their customers
and in turn retaining them. It is the need of the hour to 10. Happy employees turn out to be more dedicated and
innovative at the work front. Customer satisfaction is
change the business models from the traditional
directly related to employee satisfaction. (good
approach of placing focus on the product and not the employee retention)
customer to just the contrary.

2. The mature markets are places that have successfully There are various other tools that might change the way
implemented the technology driven approach to their business is done with the passage of time and development
workings. Learnings from such markets will be the bible of innovation. The businesses should conveniently adapt to
for the new players or companies who wish to put their its dynamic environment for the very basic need of survival or
foot forward in the tech driven space. else perish they will have to face!
3. Speedy claim settlement is one common agenda that
will be seen as targets for various insurance companies. Conclusion
The smooth claim settlement is directly related to the Learnings from
customer's satisfaction. The customers tend to perceive Customer Mature Speedy Claim
faster claim settlement as a positive feature that the Satisfaction Markets Settlement
company offers. E.g. Lemonade has set a benchmark in
this area to settle claims in less than 3 seconds. This is Change of
what is expected from all the insurers and therefore Health business Data
adaption to the same becomes necessary. Wearables Management
models
4. Health wearables are greatly used and recommended
as, they are a great source of data to the insurers. Hence,
health ecosystems will prove to be important in the life AI & Machine Auto Insurance Big Data
sector. E.g. Smart watches that keep a track of your Learning
health time to time and report all the data directly to
the insurance company. Such data stands very important
Employee
when comes to renewal of policies or setting up of rates
for specific age groups. Engagement
5. The old business models should be upgraded, a cultural
change is what the time demands which is in alignment The market will move at its own speed, new changes will
with the markets that the insurers serve in. It is essential emerge, and the various stakeholders will have to tackle and
to keep up with the pace of ongoing growth in the market
imbibe all the changes and upgradations that the market will
and the various changes.
witness. Some changes might not be relevant to the core
6. Technology driven mechanisms and models work business but ancillary. Only sustainability in such times will
completely on data. Predictive analysis cannot take place count and the resilience shown by the insurance companies
in the absence of abundant data. Data management is to run long in the race by following these universal objectives.
the key to success in the implementation of technology
in insurance. Data is the heart of innovation in the industry and all the
technological developments revolve around the same. This
7. AI & Machine learning, two major players to bring in further helps reduce costs of the insurance company thus
efficiency.
providing a flexible and dynamic business model that brings
8. The motor insurance sector is talked to be the gateway in more power.
of insurance. Personalized packaged polices will be
popular in the near future where the insurance The focus shift has now been placed with the digital audience.

24 The Insurance Times, February 2022